A company's income statement shows that their financial picture is headed in a negative direction rather than a positive direction. What must be true in this situation?

Question

A.
The company likely sold a large amount of goods recently.

B.
The company likely had more expenses than revenue.

C.
The company likely had more revenue than expenses.

D.
They must have had huge gains in long-term assets.

Answer 1

B. The company likely had more expenses than revenue.